Navigating the digital transformation path: The role of digital leadership and technological capability through the dynamic capability model
References
- Alrasheedi, N. S., Sammon, D., & McCarthy, S. (2022). Understanding the characteristics of workforce transformation in a digital transformation context. Journal of Decision Systems, 31(sup1), 362–383. doi:
10.1080/12460125.2022.2073636 . - Balakrishnan, R., & Das, S. (2020). How do firms reorganize to implement digital transformation? Strategic Change, 29(5), 531–541. doi:
10.1002/jsc.2362 . - Bazrkar, A., Aramoon, E., Hajimohammadi, M., & Aramoon, V. (2022). Improve organizational performance by implementing the dimensions of total quality management with respect to the mediating role of organizational innovation capability. Studia Universitatis Vasile Goldiș Arad, Seria Științe Economice, 32(4), 38–57.
- Benitez, J., Arenas, A., Castillo, A., & Esteves, J. (2022). Impact of digital leadership capability on innovation performance: The role of platform digitization capability. Information & Management, 59(2), 103590. doi:
10.1016/j.im.2022.103590 . - Bhatia, M. S. (2021). Green process innovation and operational performance: The role of proactive environment strategy, technological capabilities, and organizational learning. Business Strategy and the Environment, 30(7), 2845–2857. doi:
10.1002/bse.2775 . - Chatterjee, S., Chaudhuri, R., Vrontis, D., & Giovando, G. (2023). Digital workplace and organization performance: Moderating role of digital leadership capability. Journal of Innovation & Knowledge, 8(1), 100334. doi:
10.1016/j.jik.2023.100334 . - Cohen, J. (1988). Statistical power analysis for the behavioral sciences (2nd ed.). Erlbaum.
- Cohen, J. (1992). A power primer. Psychological Bulletin, 112(1), 155–159.
- Cserdi, Z., Fehér, P., Gáti, M., Rab, Á., & Varga, K. (2022). Understanding the societal and business perspectives of online trust literacy in the context of digitalization. Society and Economy, 44(1), 22–45. doi:
10.1556/204.2022.00002 . - Davison, R. M., Wong, L. H., & Peng, J. (2023). The art of digital transformation as crafted by a chief digital officer. International Journal of Information Management, 69, 102617. doi:
10.1016/j.ijinfomgt.2022.102617 . - DeLone, W., Migliorati, D., & Vaia, G. (2018). Digital IT governance. In G. Bongiorno, D. Rizzo, & G. Vaia. (Eds.), CIOs and the digital transformation. A new leadership role (pp. 205–230). Springer.
- Ellström, D., Holtström, J., Berg, E., & Josefsson, C. (2021). Dynamic capabilities for digital transformation. Journal of Strategy and Management, 15(2), 272–286. doi:
10.1108/JSMA-04-2021-0089 . - Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50. doi:
10.1177/002224378101800104 . - Gillani, F., Chatha, K. A., Jajja, M. S. S., & Farooq, S. (2020). Implementation of digital manufacturing technologies: Antecedents and consequences. International Journal of Production Economics, 229, 107748. doi:
10.1016/j.ijpe.2020.107748 . - Hair, J. F., Hult, G. T. M., Ringe, C. M., & Sarstedt, M. (2017). A primer on partial least squares structural equation modeling (PLS-SEM) (2nd ed.). SAGE. doi:
10.1017/CBO9781107415324.004 . - Hair, J. F., Hult, G. T. M., Ringe, C. M., & Sarstedt, M. (2022). A primer on partial least squares structural equation modeling (PLS-SEM) (3rd ed.). SAGE. doi:
10.1007/978-3-319-57413-4_15 . - Hair, J. F., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial least squares structural equation modeling (PLS-SEM): An emerging tool in business research. European Business Review, 26(2), 106–121. doi:
10.1108/EBR-10-2013-0128 . - Hautala-Kankaanpää, T. (2022). The impact of digitalization on firm performance: Examining the role of digital culture and the effect of supply chain capability. Business Process Management Journal, 28(8), 90–109. doi:
10.1108/BPMJ-03-2022-0122 . - Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43, 115–135. doi:
10.1007/s11747-014-0403-8 . - Heubeck, T. (2023). Managerial capabilities as facilitators of digital transformation? Dynamic managerial capabilities as antecedents to digital business model transformation and firm performance. Digital Business, 3(1), 100053. doi:
10.1016/j.digbus.2023.100053 . - Hung, B. Q., Hoa, T. A., Hoai, T. T., & Nguyen, N. P. (2023). Advancement of cloud-based accounting effectiveness, decision-making quality, and firm performance through digital transformation and digital leadership: Empirical evidence from Vietnam. Heliyon, 9(6), 1–12. doi:
10.1016/j.heliyon. 2023.e16929 . - Jameson, J., Rumyantseva, N., Cai, M., Markowski, M., Essex, R., & McNay, I. (2022). A systematic review and framework for digital leadership research maturity in higher education. Computers and Education Open, 3, 100115. doi:
10.1016/j.caeo.2022.100115 . - Janes, J. K., Miller, J. M., Dupuis, J. R., Malenfant, R. M., Gorrell, J. C., Cullingham, C. I., & Andrew, R. L. (2017). The K = 2 conundrum. Molecular Ecology, 26(14), 3594–3602.
- Jiang, X., Wang, G., De Clercq, D., & Yi, X. (2020). How do firms achieve successful technology commercialization? Evidence from Chinese manufacturing firms. IEEE Transactions on Engineering Management, 69(5), 1973–1986. doi:
10.1109/TEM.2020.2997965 . - Kock, N., & Hadaya, P. (2018). Minimum sample size estimation in PLS‐SEM: The inverse square root and gamma‐exponential methods. Information Systems Journal, 28(1), 227–261. doi:
10.1111/isj.12131 . - Kolade, O., Atiase, V., Murithi, W., & Mwila, N. (2021). The business models of tech hubs in Africa: Implications for viability and sustainability. Technology Analysis & Strategic Management, 33(10), 1213–1225. doi:
10.1080/09537325.2021.1947492 . - Konopik, J., Jahn, C., Schuster, T., Hoßbach, N., & Pflaum, A. (2022). Mastering the digital transformation through organizational capabilities: A conceptual framework. Digital Business, 2(2), 100019. doi:
10.1016/j.digbus.2021.100019 . - Lee Ludvigsen, J. A., & Petersen-Wagner, R. (2023). From television to YouTube: Digitalised sport mega-events in the platform society. Leisure Studies, 42(4), 615–632. doi:
10.1080/02614367.2022.2125557 . - Mai, N. K., Do, T. T., & Tran, P. M. (2023). How leadership competences foster innovation and high performance: Evidence from the tourism industry in Vietnam. Journal of Hospitality and Tourism Insights, 6(3), 1253–1269. doi:
10.1108/JHTI-02-2022-0083 . - Masoud, R., & Basahel, S. (2023). The effects of digital transformation on firm performance: The role of customer experience and IT innovation. Digital, 3(2), 109–126. doi:
10.3390/digital3020008 . - Mihu, C., Pitic, A. G., & Bayraktar, D. (2023). Drivers of digital transformation and their impact on organizational management. Studies in Business and Economics, 18(1), 149–170. doi:
10.2478/sbe-2023-0009 . - Mohammed, A. A., & AL-Abrrow, H. (2023). The impact of empowering and transformational leadership on organizational performance and innovation: The mediating role of shared leadership and moderating role of organizational culture in the Iraqi healthcare sector. International Journal of Organizational Analysis, 31(7), 3532–3552. doi:
10.1108/IJOA-08-2022-3380 . - Mohapatra, B., Tripathy, S., Singhal, D., & Saha, R. (2022). Significance of digital technology in manufacturing sectors: Examination of key factors during COVID-19. Research in Transportation Economics, 93, 101134. doi:
10.1016/j.retrec.2021.101134 . - Mulyana, R., Rusu, L., & Perjons, E. (2024). The key ambidextrous IT governance mechanisms for a successful digital transformation: Case study of Bank Rakyat Indonesia (BRI). Digital Business, 4(2), 100083. doi:
10.1016/j.digbus.2024.100083 . - Munsamy, M., Dhanpat, N., & Barkhuizen, E. N. (2023). The development and validation of a digital leadership competency scale. Acta Commercii-Independent Research Journal in the Management Sciences, 23(1), 1057. doi:
10.4102/ac.v23i1.1057 . - Persaud, A., & Zare, J. (2023). Beyond technological capabilities: The mediating effects of analytics culture and absorptive capacity on big data analytics value creation in small-and medium-sized enterprises. IEEE Transactions on Engineering Management, 71, 7147–7159. doi:
10.1109/TEM.2023.3249415 . - Podsakoff, P. M., MacKenzie, S. B., Lee, J. Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879.
- Priyono, A., Moin, A., & Putri, V. N. A. O. (2020). Identifying digital transformation paths in the business model of SMEs during the COVID-19 pandemic. Journal of Open Innovation: Technology, Market, and Complexity, 6(4), 104. doi:
10.3390/joitmc6040104 . - Ren, Z., Gao, Q., Sun, T., & Sun, M. (2024). How does China’s digital government construction affect enterprise exploratory innovation? Insights based on invention knowledge inertia. Digital Business, 4(2), 100089. doi:
10.1016/j.digbus.2024.100089 . - Ringle, C. M., Wende, S., & Becker, J. M. (2022). SmartPLS 4. Oststeinbek: SmartPLS GmbH.
- Roldán, J. L., & Sánchez-Franco, M. J. (2012). Variance-based structural equation modeling: Guidelines for using partial least squares in information systems research. In Research methodologies, innovations and philosophies in software systems engineering and information systems (pp. 193–221). IGI Global. doi:
10.4018/978-1-4666-0179-6.ch010 . - Rupeika-Apoga, R., Petrovska, K., & Bule, L. (2022). The effect of digital orientation and digital capability on digital transformation of SMEs during the COVID-19 pandemic. Journal of Theoretical and Applied Electronic Commerce Research, 17(2), 669–685. doi:
10.3390/jtaer17020035 . - Shen, L., Zhang, X., & Liu, H. (2022). Digital technology adoption, digital dynamic capability, and digital transformation performance of textile industry: Moderating role of digital innovation orientation. Managerial and Decision Economics, 43(6), 2038–2054. doi:
10.1002/mde.3507 . - Shukla, B., Sufi, T., Joshi, M., & Sujatha, R. (2023). Leadership challenges for Indian hospitality industry during COVID-19 pandemic. Journal of Hospitality and Tourism Insights, 6(4), 1502–1520. doi:
10.1108/JHTI-08-2021-0217 . - Stone, M. (1974). Cross‐validatory choice and assessment of statistical predictions. Journal of the Royal Statistical Society: Series B (Methodological), 36(2), 111–133. doi:
10.1111/j.2517-6161.1974.tb00994.x . - Streukens, S., & Leroi-Werelds, S. (2016). Bootstrapping and PLS-SEM: A step-by-step guide to get more out of your bootstrap results. European Management Journal, 34(6), 618–632. doi:
10.1016/j.emj.2016.06.003 . - Sumrit, D. (2021). What are the obstacles hindering digital transformation for small and medium enterprise freight logistics service providers? An interpretive structural modeling approach. Uncertain Supply Chain Management, 9(3), 719–730. doi:
10.5267/j.uscm.2021.4.006 . - Tagscherer, F., & Carbon, C. C. (2023). Leadership for successful digitalization: A literature review on companies’ internal and external aspects of digitalization. Sustainable Technology and Entrepreneurship, 2(2), 100039. doi:
10.1016/j.stae.2023.100039 . - Tarighi, S., Shavvalpour, S., & Sobhanifard, Y. (2021). The impact of technological learning on generating and managing technical change through mediating role of technological capabilities: The case of EOR in Iran. IEEE Transactions on Engineering Management, 71, 359–373. doi:
10.1109/TEM.2021.3111020 . - Teece, D. J. (2016). Dynamic capabilities and entrepreneurial management in large organizations: Toward a theory of the (entrepreneurial) firm. European Economic Review, 86, 202–216.
- Tieng, K., Jeenanunta, C., Chea, P., & Rittippant, N. (2022). Roles of customers in upgrading manufacturing firm technological capabilities toward industry 4.0. Engineering Management Journal, 34(2), 329–340. doi:
10.1080/10429247.2021.1922219 . - Wang, X., Li, Y., Tian, L., & Hou, Y. (2023). Government digital initiatives and firm digital innovation: Evidence from China. Technovation, 119, 102545. doi:
10.1016/j.technovation.2022.102545 . - Wu, W., Liang, Z., & Zhang, Q. (2022). Technological capabilities, technology management and economic performance: The complementary roles of corporate governance and institutional environment. Journal of Knowledge Management, 26(9), 2416–2439. doi:
10.1108/JKM-02-2021-0135 . - Yang, M., Fu, M., & Zhang, Z. (2021). The adoption of digital technologies in supply chains: Drivers, process and impact. Technological Forecasting and Social Change, 169, 120795. doi:
10.1016/j.techfore.2021.120795 . - Zhang, J., Long, J., & von Schaewen, A. M. E. (2021). How does digital transformation improve organizational resilience? Findings from PLS-SEM and fsQCA. Sustainability, 13(20), 11487. doi:
10.3390/su132011487 . - Zhang, G., Wang, T., Wang, Y., Zhang, S., Lin, W., Dou, Z., & Du, H. (2023). Study on the Influencing factors of digital transformation of construction enterprises from the perspective of dual effects – A hybrid approach based on PLS-SEM and fsQCA. Sustainability, 15(7), 6317. doi:
10.3390/su15076317 . - Zhao, W., & Huang, L. (2022). The impact of green transformational leadership, green HRM, green innovation, and organizational support on the sustainable business performance: Evidence from China. Economic Research-Ekonomska Istraživanja, 35(1), 6121–6141.
- Zhe, B. O. M., & Hamid, N. A. (2021). The impact of digital technology, digital capability and digital innovation on small business performance. Research in Management of Technology and Business, 2(1), 499–509.
Language: English
Page range: 48 - 64
Submitted on: May 31, 2025
Accepted on: Sep 9, 2025
Published on: Sep 30, 2025
Published by: Society for Business Excellence
In partnership with: Paradigm Publishing Services
Publication frequency: 4 times per year
Keywords:
Related subjects:
© 2025 Kwabena Nsiah Takyi, Chovancová Miloslava, George Yaw Bludo, Sabog Aloysius, published by Society for Business Excellence
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.